EAST NEW YORK - A whopping budget gap has the New York City Housing Authority cutting staff and selling off property.

NYCHA said it faces a $225 million budget gap for 2007. The agency plans to reduce that amount by selling vacant lots near its public housing complexes, such as land near the Linden Houses in East New York. The agency maintains money from the sales will go toward housing for low-income New Yorkers.

The agency plans to cut 500 jobs this year. It will also utilize money used to maintain properties to help close the gap.

NYCHA admits, even with the budget tightening, it will only be able to close the gap to $51 million for 2007. The agency blames the state and federal government, saying NYCHA has long been under-funded.

Related information:NYC Housing Authority